Media personality Dave Hughes once worked in an abattoir[1]. Food writer and chef Stephanie Alexander left a career as a librarian to follow her passion for cooking[2].
Almost everyone toys with the idea of a career change at some stage. Reasons vary from a desire to be your own boss or wanting to make the world a better place, to boredom with a career path that was decided with limited experience and information.
It’s estimated that half of Australia’s workers are dissatisfied with their careers, with almost a quarter planning a change in the next 12 months[3]. And by the time they retire, most Australians will have had at least three different careers[4].
Practical matters
Changing careers is a major undertaking, so it’s wise ask yourself if it’s really necessary. Perhaps your employer is the problem rather than your line of work, or maybe a change in your current duties would make you feel engaged again?
You also need to consider your timing. Do you have the responsibility for school-age children or an elderly parent? Do you have a sizeable mortgage?
Family and financial commitments don’t rule out a career change, but these commitments do need to be taken into consideration when determining exactly when and how to make the transition.
Making the switch
After reviewing your personal circumstances, do some research on the industry you’re hoping to break in to. Is it expanding or contracting? Is there a history of age discrimination? Are there many jobs or business opportunities available?
Be conscious that some traditional industries are in terminal decline while others are emerging to take their place. The healthcare, education, construction and technical services industries are projected to provide around half of all new jobs over the next five years[5].
Some career changes may require further study or re-training. A short vocational course is easily managed but if you have to spend years at university make sure the benefits will outweigh the costs. Before you take the plunge, try to make contact with people working in the field you’re targeting and ask for guidance about how you can follow in their footsteps.
Once you’re ready to start knocking on doors, update your resume making sure to highlight any transferrable skills. If it’s been a while since your last job interview brush up your skills and ask a friend or family member to act as the interviewer.
Hip pocket realities
At least in the short term, a career change typically means a drop in income as you spend time studying and accept a more junior role or launch a business. So the larger the pool of savings you can build up before making the switch, the better. You may also wish to consider working part-time in your old industry while establishing yourself in your new one.
If you don’t have a cash buffer, you will need to adjust the rest of your life accordingly. This could mean leading a more frugal lifestyle unless your partner agrees to bring in more income. Financial goals such as saving for an investment property may also need to be put on hold.
Once you’ve made the career change, make sure your superannuation strategy and insurance cover are still appropriate.
Seek expert advice
If you are considering a career change, come and speak to us about the financial implications. We can help clarify your current financial situation and predict how it will be impacted by a career transition. We can provide advice about superannuation and insurance options and suggest strategies for managing your budget and cash flow.
[1] http://www.creammagazine.com/2015/01/9-successful-people-who-prove-its-never-too-late-to-change-career/
[2] http://www.kidspot.com.au/MySpot-hot-topics-How-10-inspirational-women-changed-their-lives+6675+180+article.htm
[3] http://courseofaction.seeklearning.com.au/ready-for-a-career-change-youre-not-alone/
[4] http://courseofaction.seeklearning.com.au/ready-for-a-career-change-youre-not-alone/
[5] https://docs.employment.gov.au/system/files/doc/other/australian_jobs_2015_1.pdf p.15
